Diminishing Syria fears give markets a boost as volume slightly improved; Integrys dips

By Stephanie N. Rotondo

Phoenix, Sept. 10 - Preferred stocks were gaining in strength on Tuesday as a non-military option in regards to Syria emerged.

A trader said "the markets rallied" on news that Russia had proposed overseeing the nation's chemical weapons arsenal, a move that would likely avoid a U.S. military attack.

Liquidity was still on the lighter side but had "improved" from the previous session, according to a market source.

After seeing a couple deals added to the calendar on Monday, there were no new issues announced on Tuesday. Even Kayne Anderson MLP Investment Co.'s newly priced $50 million issue of 6.4% series G mandatorily redeemable preferreds weren't all that busy.

"Somebody has been looking for a market on them, but I haven't seen anything," a trader said.

Another market source said the issue freed late in the day after trading at or around par for most of the session. He said the closing price was $24.90, but that some late-reported/aftermarket trades occurred at between $24.98 and $25.02.

The volume weighted average price was $24.97.

Health Care REIT active

Integrys Energy Group Inc.'s 6% $25-par junior subordinated notes due 2073 (NYSE: IEH) made the most actively traded list for the second consecutive session on Tuesday, though a market source said there was no news to push the volume up.

The paper traded off a nickel to $24.21. Over 1 million notes changed hands during the session.

Health Care REIT Inc.'s 6.5% series J cumulative redeemable preferreds (NYSE: HCNPJ) were also active, rising 8 cents to $23.42.

Away from those issues, financials were dominating the board.

Wells Fargo & Co.'s 5.85% fixed-to-floating rate series Q noncumulative perpetual preferreds (NYSE: WFCPQ) ended the day down 12 cents at $23.90 and BB&T Corp.'s 5.625% series E noncumulative perpetual preferreds (NYSE: BBTPE) were also weaker, losing 6 cents to close at $21.22.

However, Royal Bank of Scotland Group plc's 6.4% series M noncumulative dollar preference shares (NYSE: RBSPM) put on a dime to finish at $20.39.

That issue goes ex-dividend at the end of the month.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.